Debt down as QLDC records surplus

The Queenstown Lakes District Council has recorded a $20million surplus for the year to the end of June 30.

At a recent council meeting, chief financial officer Stewart Burns described the result as ''very strong'', but reminded councillors a surplus was not the same thing as a profit.

In his annual report, Mr Burns said the surplus was against a budgeted surplus of $13 million.

Last year's surplus was $11.4 million.

Mr Burns said among the reasons for the higher surplus were expenditure being $3.4 million less than budgeted and revenue being $3.6 million higher than budgeted.

The council received $7.1 million more ''vested assets'' from new subdivisions than budgeted but $3 million less in roading subsidies and $2.4 million less in user charges.

Operating expenditure was $3.4 million (3.7%) under budget. Mr Burns said the reasons included interest payments being $1.9 million less than budget because some capital work had been deferred and because of lower-than-expected interest rates.

Staff costs were $1.2 million less than budget as a result of fewer staff being employed.

Expenditure on the council's four holiday parks was $1.8 million less than budgeted as a result of the parks being leased.

Capital expenditure was $9.6 million less than estimated. Mr Burns said this related mainly to roading projects delayed or deferred, including the $3.5 million Glenda Dr roundabout.

The Hawea water supply was also delayed until this year, reducing expenditure by $1 million.

The deferrals of capital projects had reduced borrowings by $17.5 million, Mr Burns said.

There had been a nil rate increase for the year and also a reduction in the council's debt for the first time in many years - from $107 million to $102 million.

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